Airlines are Entrepreneurs too.

Not that the airline industry has been innocent from government help and like I mentioned before Europe has called the U.S. to deregulate the ownership laws. The airlines are not waiting around for a bailout this time. They are, in fact, innovating like any good industry would when troubling times come. This from the International Herald Tribune:

“The passenger beside you is playing poker on an online gambling site. His wife is chatting on her mobile phone while the children fire off text messages and tune in to pay-per-view satellite TV. Your overpriced drink sits on a tray table embellished with advertising, while the cabin crew, working on commission, moves up and down the aisles peddling theater tickets and DVDs along with traditional duty-free goods – for home delivery.

The idea is part of a frantic quest by airlines for new ways to maximize earnings amid a financial crisis that is hurting demand after oil prices climbed dramatically over the past two years. With little control over most of their costs, the airlines are increasingly charging passengers for elements once covered by their tickets, while low-cost carriers are spearheading efforts to find new things to sell in the air.”

This will hopefully attract more people to fly but more importantly will set up a price structure. Certain levels will have certain prices and so will certain features. Duty-free stuff will be offered along with many other features. I personally hate flying so anything they can do to make it more pleasant would be great.

The rest is here.

~PCCapitalist

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Published in: on October 16, 2008 at 10:36 pm  Leave a Comment  
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